Leaseholder vs

Understanding Leaseholder and Shared Ownership Schemes

• A leaseholder buys the right to live in a home for a fixed number of years from the landlord, but does not own the land or building.
• The landlord is responsible for building maintenance and repair, while the leaseholder is responsible for internal property repairs.
• Shared ownership is a government-backed scheme for people who cannot afford to buy a home at full market value.
• Shared ownership is a part-buy/part-rent scheme where buyers purchase a share in the property and pay rent on the remaining share.
• Social Home Buy, Right to Acquire, Right to Buy, and Help to Buy are purchasing schemes available for shared ownership properties.
• Shared ownership eligibility criteria includes age, annual household income, and being a first-time buyer or in the process of selling a home.
• Discounts may be available depending on the location, and tenants who have been with Peabody for five or more years may qualify to buy their current home.
• Staircasing allows shared ownership leaseholders to buy further shares of their property, with a minimum additional purchase of 10% and multiples of 5%.
• Resale properties are homes that current owners bought through shared ownership and now wish to sell on.
• If a seller of a shared ownership property does not own 100%, they must give Peabody eight weeks to sell the property before putting it on the open market.
• If a seller owns 100% of their property, they can sell on the open market without Peabody's assistance.
• Costs involved in selling a shared ownership property include valuation, marketing fee, legal fees, EPC, and leasehold information pack.